Pernod full-year profit up 2 percent, China improves

PARIS (Reuters) - French spirits maker Pernod Ricard (PERP.PA) reported full-year 2014/15 underlying profit growth of 2 percent on Thursday, slightly below analysts' expectations, thanks to cost cuts and improving cognac sales in China.

The world's second-biggest spirits group behind Britain's Diageo (DGE.L) handed investors a 10 percent dividend hike although an impairment charge on its Absolut vodka, which faces lower growth in the United states, weighed on net profit.

The owner of Mumm champagne and Martell cognac said that in a macroeconomic environment that was "challenging and volatile", it would continue to gradually improve its business performance in the current year that started on July 1.

Pernod Ricard reported a 2 percent rise in profit from recurring operations to 2.238 billion euros ($2.54 billion) for its financial year ended June 30.

This was in line with Pernod's guidance for underlying operating profit growth of 1 to 3 percent, while analysts had on average expected 2.5 percent growth.

(Reporting by Dominique Vidalon; Editing by James Regan)